Senate committee rebuffs Obama funding request for IMF vote reform

March 11, 2013|Reuters

WASHINGTON, March 11 (Reuters) - The Senate AppropriationsCommittee on Monday rebuffed a request by the Obamaadministration to approve a permanent increase in U.S. fundingto the International Monetary Fund, part of a broader deal thatwould increase the voting power of emerging market economies inthe global lender.

Senate Democratic and Republican aides said legislation thatwould avoid a government shutdown in late March did not includea provision requested by the Obama administration on IMFfunding. The Republican House of Representatives rejected therequest last week, which would shift about $65 billion in U.S.funds from an IMF crisis fund to more permanent resources.

U.S. congressional approval is needed to finalize the 2010IMF reform package, which would make China the IMF'sthird-largest voting member after the United States and Japan.It would also increase the voting power of other large emergingeconomies like Brazil and India.